Strategy for promoting supply chain diversification

(a) Strategy The Secretary, in consultation with the Secretary of Commerce and the heads of other relevant Federal departments and agencies, as determined by the Secretary, shall develop, implement, and submit to the appropriate congressional committees a diplomatic strategy to support efforts to increase supply chain resiliency and security by promoting and strengthening efforts to incentivize the relocation of supply chains from the People’s Republic of China. (b) Elements The strategy required under subsection (a) shall— (1) be informed by consultations with the governments of allies and partners of the United States; (2) provide a description of how supply chain diversification can be pursued in a complementary fashion to strengthen the national interests of the United States; (3) include an assessment of— (A) the status and effectiveness of current efforts by governments, multilateral development banks, and the private sector to attract investment by private entities who are seeking to diversify from reliance on the People's Republic of China; (B) major challenges hindering those efforts; and (C) how the United States can strengthen the effectiveness of those efforts; (4) identify United States allies and partners with comparative advantages for sourcing and manufacturing critical goods and countries with the greatest opportunities and alignment with United States values; (5) identify how activities by the International Trade Administration and other relevant Federal agencies, as determined by the Secretary, can effectively be leveraged to strengthen and promote supply chain diversification, including nearshoring to Latin America and the Caribbean as appropriate; (6) advance diplomatic initiatives to secure specific national commitments by governments in Latin America and the Caribbean to undertake efforts to create favorable conditions for nearshoring in the region, including commitments— (A) to develop formalized national strategies to attract investment from the United States; (B) to address corruption and rule of law concerns; (C) to modernize digital and physical infrastructure of these nations; (D) to improve ease of doing business; and (E) to finance and incentivize nearshoring initiatives that transfer supply chains from the People's Republic of China to the nations of the Americas; (7) advance, in coordination with the National Institute of Standards and Technology, diplomatic initiatives towards mutually beneficial dialogues on standards and regulations; and (8) in coordination with the International Trade Administration, develop and implement assistance programs to finance, incentivize, or otherwise promote supply chain diversification in accordance with the assessments and identifications made pursuant to paragraphs (3), (4), and (5), including, at minimum, programs— (A) to help develop physical and digital infrastructure; (B) to promote transparency in procurement processes; (C) to provide technical assistance in implementing national nearshoring strategies; (D) to help mobilize private investment; and (E) to pursue commitments by private sector entities to relocate supply chains from the People's Republic of China. (c) Coordination with multilateral development banks In implementing the strategy required under subsection (a), the Secretary of State and the heads of other relevant Federal departments and agencies, as determined by the Secretary, should, as appropriate, cooperate with the World Bank Group and the regional development banks through the Secretary of the Treasury. (d) Appropriate committees of Congress defined In this subsection, the term appropriate committees of Congress means— (1) the Committee on Foreign Relations, the Committee on Commerce, Science, and Transportation, the Select Committee on Intelligence, and the Committee on Appropriations of the Senate; and (2) the Committee on Foreign Affairs, the Committee on Energy and Commerce, the Permanent Select Committee on Intelligence, and the Committee on Appropriations of the of the House of Representatives.